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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Do you have the funds to cover an unexpected financial emergency? A recent Bankrate survey found that . If you can relate, it can be tempting to resort to high-interest credit cards or borrow the funds from friends or relatives. But a personal loan might be a better option. You can get the cash you need quickly, and most lenders simplify the application process by allowing you to apply online and receive a quick decision. Furthermore, many personal loans come with flexible terms and monthly payments that won’t stretch your budget too thin. Why are personal loans good for emergencies
Personal loans are great for emergency expenses because of their flexibility. Whether your basement floods or you lose your job and need cash to cover bills, an emergency loan can be a real lifesaver. They’re far more affordable than payday loans and credit cards that often have sky-high interest rates and exorbitant fees. They also have other advantages. Speed
When you have an unforeseen expense, you may need to pay for it right away. If the engine in your car broke, for example, you’d want to fix it as soon as possible since you depend on your car to get around. Depending on the lender, you may apply for a personal loan online quickly from the comfort of your own home and receive a quick or even instant decision. Upon approval, you may be able to get the money that same day, within 24 hours or in a few days. Low interest rates
When you compare personal loans for emergencies to other options, you’ll find that they come with . The higher your credit score, the lower the interest rate you’ll be able to secure. A low interest rate can save you thousands of dollars on the overall cost of your loan. If you don’t have the best credit yet need a personal loan for an emergency, don’t worry. Many online lenders have more lenient requirements than other financial institutions and may also look at factors like your income and employment history when deciding whether to approve you for a loan and what rate. Flexibility
Personal loans also come with flexible repayment terms. Most lenders offer loan terms between one and five years, which is beneficial for a few reasons. You’ll likely get an affordable monthly payment that works for your budget, especially if you get a competitive interest rate. And you won’t pay a fortune in interest like you would with a credit card since it’s already factored into the monthly payment when you take out a personal loan. Where can I get emergency loans
Emergency loans are offered by credit unions, banks and online lenders. Here’s what you should know about each option to decide which is best: Credit unions: may lend you money even if you have or . The caveat is that you must be a member of a credit union to qualify for its products and services. Banks: If you apply for an emergency loan from a traditional , you’ll likely have to meet higher credit score or income requirements. Also, you may not get the funds as quickly as you need them. Online lenders: Online lenders can process your application entirely online and get you the money you need quickly. Most also allow you to prequalify so you can find out what loan rates and terms you could qualify for before you apply. This can help you avoid a hard credit check that may . What can I use emergency loans for
The most common uses for emergency loans include: Medical bills: If you or a loved one has to go to the emergency room, for example, and your insurance policy doesn’t cover the trip in full, an emergency loan can cover the out-of-pocket costs. Depending on your insurance policy, out-of-pocket healthcare costs may be anywhere from of the cost of your service. They can quickly add up to thousands or tens of thousands of dollars or more. Car repairs: No matter what type of car you drive or how new it is, there’s a chance it will require a repair at some point in time. An emergency loan may pay for a simple repair such as new brakes or a more complex repair such as a new transmission. According to AAA, regular repair costs are usually between or more. Home repairs: A leaky faucet, a running toilet, a broken furnace and cracked siding are all examples of issues you may face as a homeowner. Fortunately, an emergency loan can help you when systems break down. The cost of home repairs varies greatly but HomeAdvisor estimates that they range from . Everyday bills: If you lose your job, get your hours cut, or are unable to work for any reason, you may need to take out an emergency loan to pay for your mortgage or rent, utilities, groceries and other bills. While monthly bills depend on a number of factors including your family size and location, the average American family spends on their household bills. The bottom line
In a perfect world, we’d have the power to plan for every expense in our lives. Since unforeseen expenses are bound to arise, personal loans can be very helpful. A personal loan can allow you to cover unanticipated expenses without the hassle. Learn more
SHARE: Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Related Articles